How can economic policy drive low carbon technology?

Answers

Economic Policies can effectively spur low carbon technology, so long as it creates an economic incentive to limit emissions. President Obama’s modification to the current United States Carbon Cap-and-Trade Plan would do this, like many other similar policies that sell of carbon credits to emit the gas. This penalizes those who pollute financially, while benefiting those who limit their pollution.

Also, if economic policy encourages spending on green initiatives, grants and subsidies can be used to finance the development and advancement of energy efficient technologies. Generally, fiscal conservatives advocate for cuts in federal spending, which means the upfront costs for funding these technologies are too high.